Having had an interesting discussion with Chatcat, on the treatment of Carriage Outward on another thread, I had to have a close look at the Sage CoA.
In the past, I have only used it for study purposes, and two clients that were already using it. So not got to deeply involved in the general set up
What I have noticed is that the way Sage groups various nominal codes appears to me to be technically wrong, for example, when you use the P&L button to produce a Profit and Loss account it places advertising, and promotions in the Direct Costs section in the Trading Account part of the TPL, and calculates the gross profit including these expenses. Does any one else think this is incorrect?
Seems odd doesn't it, unless Sage was thinking in terms of advertising a specific product or service. General "business" promotion sits more comfortably with me as an overhead.
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
